Complete the following statements

1) Development financial institutions were established to ………….
a) provide short term funds.
b) develop industry, agriculture and other key sectors.
c) regulate the money market.
d) regulate the capital market.
Ans:- b) develop industry, agriculture and other key sectors.

2) Money market faces shortage of funds due to ………..
a) inadequate savings.
b) growing demand for cash.
c) presence of unorganized sector.
d) financial mismanagement.
Ans:- a) inadequate savings.

3) Individual investors have lost confidence in the capital market due to ………..
a) lack of financial instruments.
b) high transaction costs.
c) low returns.
d) financial scams.
Ans:- d) financial scams.

4) Commercial banks act as intermediaries in the financial system to ………..
a) make profits
b) accelerate the country’s economic growth.
c) mobilise the savings and allocating them to various sectors of the economy.
d) control the credit.
Ans:- c) mobilise the savings and allocating them to various sectors of the economy.